VMware Inc. (NYSE:VMW) finished Friday with a subtraction of -$1.18 to close at $155.26, a downside of -0.75 percent. An average of 899,160 shares of common stock have been traded in the last five days. There was a fall of -$2.99 in the past week, and it reached a new high 21 times over the past 12 months. The last 20 days have seen an average of 1,355,820 shares traded, while the 50-day average volume stands at 1,473,146.
VMW stock has decreased by -1.22% in the last month. The company shares reached their 1-month lowest point of $152.50 on 07/12/23. With the stock rallying to its 52-week high on 07/19/23, shares of the company touched a low of $103.55 and a high of $170.00 in 52 weeks. It has reached a new high 19 times so far this year and achieved 26.47% or $32.50 in price. In spite of this, the price is down -8.67% from the 52-week high.
Insider Transactions
VMW stock investors should be aware that VMware Inc. (VMW) stock had its last reported insider trading activity 36 days ago on Jul 07. In this transaction, the insider spent $2,450,062. EVP, Worldwide Sales, Brulard Jean Pierre, disposed of 3,600 shares at a price of $141.51 on Jul 06. The insider now owns more than $509,436 worth of shares. Prior to that, Chief Financial Officer & EVP Rowe Zane went on to Sale 35,715 shares at $124.53 each on Apr 03. An amount of $4,447,592 was transacted.
Valuation Metrics
VMware Inc. (VMW) has a trailing price-to-earnings (P/E) ratio of 51.27. The stock’s beta is 0.73. Other valuation ratios to consider include the trailing price-to-sales (P/S) ratio at 4.94, the price-to-book (PB) ratio at 35.61, and the price-to-cash flow ratio at 14.56.
Financial Health
The quick ratio of VMware Inc. for the three months ended April 29 was 0.80, and the current ratio was 0.80, indicating that the company is not able to meet its debt obligations. Further, the company has a long term debt to equity ratio of 5.08 and a total debt to equity ratio of 5.62 for the quarter ending April 29. VMware Inc.’s EBITDA margin for the year ending April 29 is 24.45%, while its operating margin for the same period stands at 14.20%. Its gross profit as reported stood at $10.87 billion compared to revenue of $13.35 billion.
For investors, determining the potential profitability of the investment also depends on the performance of the company’s management. In the past 12 months, VMware Inc.’s return on assets was 4.40%.
Earnings Surprise
For the three-month period that ended April 29, VMware Inc. had $9.45 billion in total debt. In the quarter under review, the net income was down than the previous quarter. The company posted a net income of $224.0 million in the quarter, while revenues were shrunk -8.04%. The analyst consensus anticipated VMware Inc.’s latest quarter earnings to come in at $1.56 per share, but it turned out to be $1.49, a -4.50% surprise. For the quarter, EBITDA amounted to $640.0 million. Shareholders own equity worth $430.36 million.
Technical Picture
From a technical analysis perspective, let’s take a brief look at VMware Inc. (VMW) price momentum. RSI 9-day as of the close on 11 August was 41.39%, suggesting the stock is Neutral, with historical volatility in this time frame at 10.17%.
As of today, VMW’s price is $157.16 -1.89% or -$2.99 from its 5-day moving average. VMW is currently trading -0.62% lower than its 20-day SMA and +31.82% higher than its 100-day SMA. However, the stock’s current price level is +13.92% above the SMA50 and +40.37% above the SMA200.
The stochastic %K and %D were 8.39% and 10.92%, respectively, and the average true range (ATR) was 2.83. With the 14-day stochastic at 9.55% and the average true range at 3.04, the RSI (14) stands at 51.04%. The stock has reached -1.64 on the 9-day MACD Oscillator while the 14-day reading was at -2.01.
Analyst Ratings
UBS reiterated its a Neutral rating on VMware Inc. (NYSE: VMW), but raised their price target to $125, indicating a potential price decrease of -24.21% for the stock. The consensus rating for VMware Inc. (VMW) among analysts is Hold. According to current brokerage recommendations, 0 brokerage firms advise that investors sell VMW, while 10 suggest investors hold. There are 0 analysts who rate the stock as underweight. The stock is rated overweight by 1 analysts, while 1 others rate it as a “buy”.
What is VMW’s price target for the next 12 months?
Analysts predict a range of price targets between $134.00 and $161.00, with a median target of $139.75. Taking a look at these predictions, the average price target given by analysts for VMware Inc. (VMW) stock is $141.88.
